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How To Raise Funds From Venture Capital - Business - Nairaland

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How To Raise Funds From Venture Capital by padron4(m): 9:13pm On Oct 16, 2014
If you have a venture then you have the ability to raise capital. As you gear up to be connected with an investor, here is an overview of how to prepare yourself for a fundraising campaign, the very step needed to connect your business with investors.

Prepare your scheme
Before putting out your venture for fundraising, it is imperative you work on your visibility. This gives investors an opportunity to do a first assessment of your business and access its potential. To improve your chances, add letters of Intent from strategic partners or contracts with existing customers, etc. Add relevant media that helps to give an impression of the company and team.

Also make sure to add team members and advisors to your team page and complete the Quick Scan. These help investors see who is part of your team and understand how far you are in building the business. Some investors back early stage companies while others focus on growth stage. These tools improve your chances of meeting the right investors.

Register your purpose
Given the results of the quick Scan, the next step is to register your intention to raise a round of funding. You need to indicate the financing stage (Seed, Start-up etc.) You also need to indicate the financing type (Equity, Debt or Hybrid) and your capital needs (say between USD $10,000 and USD $1 million), this allows a venture capitalist review your registered intention. The next step is to garner investor interest and secure a lead investor.

Engage likely lead investors
If you have done your work and your venture clearly shows traction, you will hopefully secure interest from a number of possible lead investors. You can engage them and work to understand the differences between them. It’s up to you to decide who is the best investor for your business and agree to a fair term sheet. Do not approve the lead investor until you feel confident about the terms of the deal they are offering. If they have not made the investment into your business, you can ask them to send a bank guarantee showing they have the required capital on reserve. When the lead investor is approved, you can upload the term sheet to the documents tab on your venture profile.

Raising funds
Once a lead investor is secured, the venture can go into “Raising Capital Mode” for a period of time. At this stage, investors can review the term sheet and express their interest to participate. They can outline how they plan to contribute in non-financial ways and any terms or conditions they might have as part of their participation.

Closing the pact
It is time to close the deal. At this stage of your deal, you should expect to receive copies of the registered intentions and can follow up with the lead investor to close the financing round. Once completed, you should put your venture back into building mode. Make sure you maintain the foundations needed to raise additional capital in the future!

Source: http://naijainvestgateway.com/2014/10/fundamental-steps-raising-funds-venture-capitalistsinvestors.html?utm_campaign=twitter&utm_medium=twitter&utm_source=twitter

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Re: How To Raise Funds From Venture Capital by jostking: 4:49pm On Oct 17, 2014
Nice work padron, enlightning. Still haven't had frm you.
Re: How To Raise Funds From Venture Capital by padron4(m): 2:10am On Oct 18, 2014
Hi @Jostking sorry if I have not responded your email. kindly remind me the content. I do receive a lot of emails, but I will respond ASAP

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